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Setting up your pension deductions

Created on  | Last modified on 

Summary

This guide explains how to set up your pension deductions in Sage Payroll.

Description

If you want to use a standard pension, personal retirement savings account (PRSA), or retirement annuity contract (RAC) in Sage Payroll, you must set up a pension deduction and associate it to a pension scheme link

NOTE: If you want to set up Construction Workers Pension (CWPS) deductions, please refer to this guide >

Resolution

If you want to record standard pension amounts and additional voluntary contributions (AVC), you must set up two separate gross deductions on your payroll.

  1. On the menu bar, click Company/Payroll then click Deductions.
  2. Click New, then set up the deduction as follows:
    TitleEnter a name for the pension deduction. For example, Pensions or PRSA.
    TypeClick Gross.
    Sub-TypeClick Pension / RAC / PRSA, or Pension / RAC / PRSA / CWPS if available.
    PensionClick the relevant pension scheme link.

    CAUTION: Check that the pension link has been set up correctly for the type of pension/PRSA deduction being set up.

    AVCIf the deduction is an additional voluntary contribution, select this check box. 
    Multiply by the number of holiday periodsIf the deduction is holidayable, select this check box. When you process an employee's time and pay, the value of a holidayable deduction adjusts according to the number of holiday periods you enter.

    CAUTION: This option is only available in weekly and fortnightly payrolls.

    Balance Type Click Accumulate a balance.
  3. Click Save.
  4. Repeat steps 2 and 3 for any other pension deduction you want to set up, then click Close.
  5. You can now start deducting contribution details from your employees' pay. Read more >